Mumbai: RBI Governor Sanjay Malhotra on Monday asked banks and corporates to come together and drive the "animal spirits" to create an investment cycle, as the country navigates a choppy global economic environment.
In his inaugural address at the annual banking conference ‘FIBAC 2025’, the Governor said RBI is examining measures to expand bank credit including the sunrise sectors.
"I would like to emphasise that we might seem to be on opposite sides, with the regulated entities trying to accelerate growth and the regulators focussing on stability, but we actually have the same objectives. We are in the same team, we have the same shared vision of a Vikshit Bharat," he said.
Malhotra said he is looking forward to working together with the regulated entities to improve the efficiency and effectiveness of India's financial intermediation to ensure that the due benefits reach the people. "At the time when the balance sheets of the banks and the corporates are at their best, they should come together and drive the animal spirits to create an investment cycle, which is so important at this juncture," he said.
The Governor also said the Reserve Bank will continue to conduct monetary policy with the primary objective of price stability, keeping in view the objective of growth. He further said the Indian economy today is characterised by robust macroeconomic fundamentals and continues to be a symbol of resilience and hope.
"We are now at a critical juncture... as we navigate the choppy global economic environment, characterised by heightened trade, uncertainty, and persisting geopolitical tensions, we need to push the frontiers of growth," he added.
Malhotra stressed on stepping up efforts to address emerging challenges, and at the same time seize the opportunities. He further said the central banks will continue to embrace technology, including AI and ML, and expected all regulated entities to invest in these technologies for their own benefit and for the benefit of their customers.
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